Capital Markets Insights | 18 Nov - 22 Nov

1. Stock Market Recovery: The S&P 500 and Nasdaq showed signs of recovery, with the S&P 500 gaining 0.4% and the Nasdaq rising by 0.6%. This bounce back was largely in response to last week's decline, although they did not surpass their post-election highs. The market's attention was notably on corporate earnings, particularly from Nvidia, which reported strong demand in artificial intelligence, contributing to market movements.

2. Nvidia Earnings: Nvidia was a focal point for investors due to its significant role in the AI sector. Its earnings report was eagerly anticipated, as the company's performance could influence broader market trends in technology stocks. Nvidia's results and future outlook had the potential to impact other technology companies across the AI landscape.

3. Tesla's Performance: Tesla shares surged by 5.6% on Monday, driven by expectations around federal frameworks for self-driving vehicles potentially benefiting from President-elect Donald Trump's policies. This surge reflects investor optimism regarding Tesla's future under Trump's administration, given CEO Elon Musk's relationship with the president-elect.

4. Sector Movements: The technology sector led gains, while energy and financials experienced declines. This movement indicates a nuanced market where tech continues to be a driving force, potentially due to innovation and growth expectations, whereas energy and financial sectors might be facing different pressures or expectations regarding policy changes.

5. Geopolitical Tensions: Although not directly related to market performance, geopolitical issues, like the use of U.S.-made missiles by Ukraine, might have influenced market sentiment, particularly in sectors sensitive to international relations and defense spending.

• Ukraine-Russia Conflict: The U.S. administration under President Biden gave Ukraine the green light to use long-range missiles against Russia. This decision was met with a significant response from Russia, where Putin altered the nuclear doctrine, reducing the threshold for the use of nuclear weapons. This escalation comes after Ukraine reportedly fired six ATACMS missiles into Russian territory, marking an intensification of the conflict. These actions could lead to heightened tensions and potentially a more aggressive response from Russia, impacting global security dynamics and energy markets.

• Iran and Israel Cyber-Warfare: There's been an uptick in cyber-espionage and attacks between Iran and Israel, with Iranian hackers launching almost daily cyberattacks over the past week. This increase in cyber warfare reflects the ongoing proxy conflicts and direct confrontations between the two nations, potentially affecting oil markets due to Iran's significant role in oil production and the strategic importance of Israel in regional stability.

1. Economic Indicators: Housing starts for October decreased by 3.1% month-over-month to 1.311 million, falling below expectations of 1.335 million. This indicates a slowdown in new residential construction, potentially signaling caution in the housing market. Building permits also saw a decline, dropping by 0.6% from the previous month to 1.416 million, against an estimate of 1.430 million, suggesting a reduction in future construction plans. Manufacturing indices provided mixed signals; the Manufacturing PMI indicated a contraction for the third consecutive month at 49.8, showing manufacturing activity still below the growth threshold. However, there were sector-specific improvements, like in automotive production due to resolved supply chain issues. These indicators collectively suggest a cautious economic approach, with sectors like manufacturing facing ongoing challenges, while housing might be adjusting to recent market dynamics.

This Week's Top Gainer in US Markets (excluding small caps under $2B market cap):

• Company: SMCI (Super Micro Computer Inc)

• Gain: 78.42%

This Week's Top Loser:

• Company: LAZR (Luminar Technologies)

• Loss: -39.12%

• In-depth company analysis: Dive deep into financial statements, key metrics, and expert commentary to understand a company's true potential.

• Investorean Indicators: Utilize our proprietary set of financial ratios to explore hidden gems in the market.

• Market news and analysis: Stay informed about the latest market trends and industry developments that could impact your investments.